Riverside, California, Tops Biz2Credit's 2015 Ranking of The Best Small Business Cities in America 2015

Analysis Examined Markets with the Highest Annual Revenue, Credit Scores and Other Factors

Biz2Credit, the leading online platform for small business finance, has identified Riverside, CA, as the Best Small Business City in America, based on a weighted average that includes annual revenue, credit score, age of business (in months), and a proprietary BizAnalyzer score that takes into account cash flow, debt-to-income ratio, and business owners' personal credit scores. The Riverside-San Bernardino area ranked in the top five in three different measurements: average credit score, average annual revenue, and BizAnalyzer score. It also finished in the top ten for youngest age of business, which means startups are thriving there.

"Riverside-San Bernardino area is a hub for IT, advanced manufacturing, food processing, health & medical, professional services," said Biz2Credit CEO Rohit Arora, one of the nation's leading experts in small business finance, who oversaw the research. "Riverside's active Office of Economic Development provides valuable resources to first-time business owners and existing companies looking to expand. Its support networks including incubators, accelerators, and co-working spaces, as well as a 'Shop Riverside' campaign to promote local businesses, highlight the area's wide range of retail shops and restaurants, and increase sales tax revenues for the city's services."

Chicago, IL, finished as the "Second City" on the Biz2Credit ranking.

"Chicago is a major financial center and media center with a robust technology sector, a large number of manufacturing jobs, and it is an important hub for food processing," added Arora, whose company has provided more than $1.2 billion in financing to small and mid-sized businesses since 2007.

New York, the nation's financial hub and a booming technology sector, climbed to number three from number seven last year in Biz2Credit's Best Small Business Cities ranking. The state of California had six cities among the top 25, while Texas and Florida had three each.

"What prevents New York from being the number one city is the high cost of doing business. Rents are high, taxes are high, and businesses are tightly regulated. Of the 25 cities on the list, New York ranked last for age of business," Arora explained.

"In contrast, Orlando had the youngest businesses. Companies are sprouting up around Orlando in the entertainment and technology sectors, as well as service companies. The cost of real estate is much more affordable, it's a low tax state, and the weather is nice. The Sunshine State is a vibrant part of the country right now; it's not your grandfather's Florida anymore. It is attracting younger people and immigrants."

Riverside-San Bernardino, CA

Chicago, IL

New York Metro

Charlotte, NC

Las Vegas, NV

San Francisco-Oakland, CA

Miami-Fort Lauderdale, FL

Los Angeles, CA

Houston, TX

Dallas-Fort Worth, TX

Washington, DC Metro

Atlanta, GA

San Antonio, TX

San Diego, CA

Detroit, MI

Phoenix, AZ

Philadelphia, PA

San Jose, CA

Tampa-St. Petersburg, FL

Denver, CO

Virginia Beach-Norfolk, VA

Orlando, FL

Columbus, OH

Seattle, WA

Sacramento, CA

Indianapolis was the highest ranking city from Biz2Credit's 2014 list to drop out of the top 25 rankings this year. "The controversy over the state's recently passed controversial religious freedom bill is already hurting the state's economy," Arora added.

San Jose dropped from the top spot last year to number 18 in 2015. "The Silicon Valley is still booming, but the area is becoming an incredibly expensive place to do business. It is the West Coast equivalent of New York in that way," Arora said.

The Top 25 metro areas by Annual Revenue included Riverside-San Bernardino, CA, and the New York metro area, followed by San Francisco-Oakland.

The Bay Area is a place of innovation. Businesses are starting in nearby Oakland and elsewhere because San Francisco itself has such high costs," Arora explained.

Top 25 Metro areas with the highest applications in 2014

Average BizAnalyzer Score

Average of Age in Months

Average Annual Revenue

Average Credit Score

Riverside-San Bernardino-Ontario, CA

56

34

$1,400,960.21

628

New York Metro

63

72

$1,269,859.62

633

San Francisco-Oakland, CA

55

56

$671,049.14

620

Charlotte, NC

54

38

$627,901.09

610

San Antonio, TX

49

33

$626,910.40

596

Las Vegas, NV

53

33

$577,202.14

611

Houston, TX

54

43

$575,990.16

608

Washington, DC Metro

54

42

$570,877.46

598

Philadelphia, PA

48

29

$560,808.71

594

Atlanta, GA

53

33

$521,135.48

594

Denver, CO

52

44

$492,614.38

616

Phoenix, AZ

54

43

$462,153.30

603

Los Angeles, CA

55

53

$454,081.47

624

Miami-Fort Lauderdale, FL

54

41

$418,329.65

618

Dallas-Fort Worth, TX

53

38

$401,611.00

622

Chicago, IL

56

38

$382,361.23

634

Detroit, MI

53

42

$359,345.37

616

Orlando, FL

49

26

$307,909.30

582

San Diego, CA

53

43

$294,636.94

631

Seattle, WA

53

53

$288,668.50

595

Tampa-St. Petersburg, FL

51

33

$281,957.54

602

San Jose, CA

57

49

$279,142.72

608

Columbus, OH

51

34

$159,017.16

589

Sacramento, CA

51

37

$154,286.97

589

Virginia Beach-Norfolk, VA

50

32

$80,610.60

601

National Average

53

43

$434,982.90

608

When sorted by Age of Business (in months), Orlando was the leader, followed by a strong showing from Philadelphia.

"We are seeing a lot of small business activity in and around Philadelphia. Many neighborhoods are becoming revitalized there," Arora said.

Top 25 Metro areas with the highest applications in 2014

Average BizAnalyzer Score

Average of Age in Months

Average Annual Revenue

Average Credit Score

Orlando, FL

49

26

$307,909.30

582

Philadelphia, PA

48

29

$560,808.71

594

Virginia Beach-Norfolk, VA

50

32

$80,610.60

601

San Antonio, TX

49

33

$626,910.40

596

Tampa-St. Petersburg, FL

51

33

$281,957.54

602

Las Vegas, NV

53

33

$577,202.14

611

Atlanta, GA

53

33

$521,135.48

594

Columbus, OH

51

34

$159,017.16

589

Riverside-San Bernardino, CA

56

34

$1,400,960.21

628

Sacramento, CA

51

37

$154,286.97

589

Dallas-Fort Worth, TX

53

38

$401,611.00

622

Charlotte, NC

54

38

$627,901.09

610

Chicago, IL

56

38

$382,361.23

634

Miami-Fort Lauderdale, FL

54

41

$418,329.65

618

Washington, DC Metro

54

42

$570,877.46

598

Detroit, MI

53

42

$359,345.37

616

San Diego, CA

53

43

$294,636.94

631

Houston, TX

54

43

$575,990.16

608

Phoenix, AZ

54

43

$462,153.30

603

Denver, CO

52

44

$492,614.38

616

San Jose, CA

57

49

$279,142.72

608

Los Angeles, CA

55

53

$454,081.47

624

Seattle, WA

53

53

$288,668.50

595

San Francisco-Oakland, CA

55

56

$671,049.14

620

New York Metro

63

72

$1,269,859.62

633

National Average

53

43

$434,982.90

608

When sorted by Credit Score, Chicago was the leader, followed by New York and San Diego.

Top 25 Metro areas with the highest applications in 2014

Average Annual Revenue

Average Credit Score

Average of Age in Months

Average BizAnalyzer Score

Chicago, IL

56

38

$382,361.23

634

New York Metro

63

72

$1,269,859.62

633

San Diego, CA

53

43

$294,636.94

631

Riverside-San Bernardino, CA

56

34

$1,400,960.21

628

Los Angeles, CA

55

53

$454,081.47

624

Dallas-Fort Worth, TX

53

38

$401,611.00

622

San Francisco-Oakland, CA

55

56

$671,049.14

620

Miami-Fort Lauderdale, FL

54

41

$418,329.65

618

Detroit, MI

53

42

$359,345.37

616

Denver, CO

52

44

$492,614.38

616

Las Vegas, NV

53

33

$577,202.14

611

Charlotte, NC

54

38

$627,901.09

610

Houston, TX

54

43

$575,990.16

608

San Jose, CA

57

49

$279,142.72

608

Phoenix, AZ

54

43

$462,153.30

603

Tampa-St. Petersburg, FL

51

33

$281,957.54

602

Virginia Beach-Norfolk, VA

50

32

$80,610.60

601

Washington, DC Metro

54

42

$570,877.46

598

San Antonio, TX

49

33

$626,910.40

596

Seattle, WA

53

53

$288,668.50

595

Atlanta, GA

53

33

$521,135.48

594

Philadelphia, PA

48

29

$560,808.71

594

Columbus, OH

51

34

$159,017.16

589

Sacramento, CA

51

37

$154,286.97

589

Orlando, FL

49

26

$307,909.30

582

National Average

53

43

$434,982.90

608

"San Diego is doing surprisingly well. There is a budding technology center, and the city is trying hard to come out of the shadow of other booming California cities, such as Los Angeles, Riverside, San Francisco and San Jose," Arora said.

About the Biz2Credit Best Small Business Cities in America Study

Biz2Credit analyzed 12,000 businesses with less than 250 employees and less than $10 million in annual revenues from across the country that have been in operation for more than 1 year.

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